Mr. Ghislain Morin reports

METANOR ANNOUNCES POSITIVE PEA ON ITS BARRY GOLD PROJECT: NPV OF $53.5 M AND IRR OF 198% BEFORE TAXES

Metanor Resources Inc. has presented the highlights from the positive preliminary economic assessment study (PEA) completed by GoldMinds Geoservices Inc. on its Barry gold project (mining lease BM No. 886), which is located 100 kilometres east of Lebel sur Quevillon and 115 kilometres south of the Bachelor mine in Quebec.

Highlights of the Barry PEA (i) (all in Canadian dollars) include:

• Net present value before taxes (at 6 per cent) of $53.5-million;
• Internal rate of return before taxes of 198 per cent;
• Net present value after taxes (at 6 per cent) of $25.9-million;
• Internal rate of return after taxes of 94 per cent;
• Capital start-up of $8.5-million;
• Payback of 0.71 year with a gold price of $1,560 per ounce;
• All-in production cost of $1,114 per ounce ($891 (U.S.) per ounce);
• For the life of the mine, a production of 193,457 ounces of gold over nine years;
• An average of 21,495 ounces of gold production with up to 37,573 ounces in year 2;
• Milling of 1,200 tonnes per day at the Bachelor plant, with an average grade of 1.75 grams per tonne diluted for the life of the mine, including the first three years at 2.61 grams per tonne with a metallurgical recovery of 95 per cent;
• Sterile ration mineralization of 2.17:1.

Ghislain Morin, president and chief executive officer of Metanor Resources, declared, on behalf of the board of directors: "This positive preliminary economic study is an important milestone for Metanor. We point out that the deposit is located on a mining lease previously granted, the deposit is ready to be exploited and it has the potential for expansion. Moreover, there are no streaming agreements covering the Barry project. We will be moving quickly with start-up planned for the summer of 2017, following a feasibility study which will include current drilling results."

The study

The Barry gold mine could potentially support an open-pit mine with a conventional treatment plant using mineral industry standards, including: crushing, grinding, gravity concentration, cyanide leaching tanks, adsorption of gold by coal-activated desorption of coal, electrolytic sensing, refining and reactivation of coal, in addition to the destruction of cyanides released from the leach circuit. The Bachelor processing plant has been resized for an annual capacity of 420,000 tonnes in this preliminary technical and economic study. The anticipated gold recovery is expected to exceed 95 per cent. No provision has been made for the treatment of low mineralized material and content for material that could be mined by underground method. The calculation of the tax and mining rights was conducted by the firm Raymond Chabot Grant Thornton of Val d'Or from a cash flow document prepared by GMG. The current scenario plans for transport by road train of 150 tonnes. An average milling index of 13.3 kilowatt-hours is used.

The pit resources in all categories totalled 2.23 million tonnes at 1.54 grams per tonne measured, 270,000 tonnes at 1.40 grams per tonne indicated and 1.17 million tonnes at 2.69 grams per tonne inferred. The pit resources are derived from the total mineral resources using a model of blocks three metres E by three metres N by three metres Z (rounded) capped at 35 grams per tonne, with a cut-off grade above 0.66 gram per tonne.

                                  Mineral resources
                    
Classification             Tonnage    Au grade    Au content                    
                                (t)       (g/t)          (oz)

Measured                 2,225,000        1.54       101,000
Indicated                  270,000        1.40        12,000
Measured and indicated   2,490,000        1.52       122,000
Inferred                 1,170,000        2.69       101,000

                                         Waste                         Total
                    
Classification             Tonnage    Au grade    Au content     Tonnage   Sterile/ore                 
                                (t)       (g/t)          (oz)         (t)
                                            
Measured                 4,175,000        0.24        33,000   6,400,000
Indicated                  515,000        0.21         3,400     780,000
Measured and indicated   4,690,000        0.24        36,000   7,180,000
Inferred                 2,660,000        0.07        6,000    3,825,000
                                                                                  2.01

Technical summary

Mine life (LOM)                                                     9 years
Pit resources                                              3,612,000 tonnes
Average diluted grade gold                                         1.75 g/t
Uncovering rate (sterile ration: ore)                                2.17:1
Tonnage treated per year                                          420,000 t
Average annual production sold                                21,495 ounces
Gold produced and sold total                                 193,457 ounces

Main capital cost                                                     ($CAD)

Overburden stripping                                                      0
Processing plant                                               $1.1-million
Road repairs (40 km)                                             $2-million
Mine, drilling and feasibility                                $2.85-million
Tailings                                                           $550,000
Infrastructure                                                   $2-million
Total starting capital cost                                    $8.5-million

Operation cost (per tonne processed)                                  ($CAD)

Mining cost                                                        $27.28/t
Processing cost                                                    $19.90/t
Exploration (resources renewal)                                     $2.01/t
Accommodation and employee transportation                           $1.88/t
Increasing of the tailings pond capacity                            $0.15/t
Administrative fees                                                 $6.76/t

Financial results before taxes with a price
of gold at $1,560 per ounce ($CAD)

NPV at 6 per cent                                             $53.5-million
IRR                                                                    198%
Cost for the production of one ounce                       $1,114 per ounce
Capital reimbursement period                                      0.58 year
Available cash flow                                          $61.15-million

Financial results after taxes with a price of
gold at $1,560 per ounce (CAD)
NPV at 6 per cent                                             $25.9-million
IRR                                                             94 per cent
Capital reimbursement period                                      0.71 year
Available cash flow                                          $30.95-million

The financial analysis using a price of gold of $1,710, representing a 10-per-cent increase from the $1,560 used in the PEA, would generate a net present value of $78.07-million with an internal rate of return of 246 per cent before taxes.

(i) Cautionary statement National Instrument 43-101: The mineral resources presented here are not mineral reserves, because they have not demonstrated economic viability. The PEA is preliminary in nature and includes inferred resources that are considered speculative geologically to have economic considerations that would categorize them into mineral reserves. There is no certainty that the conclusions of the PEA will be realized. The technical report will be filed within 45 days on SEDAR.

Qualified persons

Pascal Hamelin, PEng, vice-president of operations, is the qualified person under NI 43-101 responsible for reviewing and approving the technical information contained in this news release.

Claude Duplessis, Ing, Gaston Gagnon, Ing, and Gilbert Rousseau, Ing, of Goldminds Geoservices, are the independent qualified person under NI 43-101 who have prepared and reviewed the technical information contained in this release.

We seek Safe Harbor.